Friday, 02 Dec 2011
It is reported that the National Development and Reform Commission hiked power prices raising non-residential power tariffs by CNY 0.03 per kilowatt hour effective today.
The on-grid tariff for distributors was raised by CNY 0.025 per kWh, while the hike in the on-grid tariff for coal fired power plants was CNY 0.026 per kWh. Though the NDRC released a draft plan for a tiered pricing mechanism for residential power usage, residential power prices will remain unchanged at the moment.
For the 80% of households which will fall under the first tier, the NDRC is proposing unchanged power prices.
According to the draft plan, low income families in both urban and rural areas are to be offered 10 to 15 kWh of free electricity per month. The second tier which is expected to cover 95% of all households will see a slight increase in tariffs while the final tier will have to pay significantly higher prices for electricity.
In addition, the NDRC rolled out a plan to control coal prices to help power generation companies suffering from high coal prices allowing a maximum 5%YoY rise in 2012 contract coal prices for coal produced for own use.
The NDRC imposed a cap on market coal prices with a price ceiling of CNY 800 per ton for 5,500 kilocalories coal at Qinghuangdao Port, Tianjin Port, Jingtang Port, Guotou Jingtang Port, Caofeidian Port, Yingkou Port, Jinzhou Port and Dalian Port. In order to lower the operating costs of coal producers, the NDRC will eliminate various types of charges levied by local governments.
Except for mineral resource compensation fees, and charges for the coal sustainable development fund imposed by the central government, local governments will have to waive all other charges on coal producers by the end of 2011.
The NDRC said capping coal prices at CNY 800 per ton will still result in considerable profits for coal producers and will not affect market supply.
According to the China Electricity Council, power prices had risen by a cumulative 32% since 2003 while the cost of coal had surged 150%. The China Electricity Council predicts a power supply shortage of 30 million to 40 million kilowatts this winter and next spring.
Thermal power producers generated total profits of CNY 10.4 billion during the first three quarters down by 50%YoY. Third-quarter profits fell 58% to CNY 1.7 billion.
(Sourced from yicai.com)
Showing posts with label steam coal prices hike. Show all posts
Showing posts with label steam coal prices hike. Show all posts
Friday, December 2, 2011
Wednesday, September 28, 2011
CIL to hike steam coal prices only after wage revision
Wednesday, 28 Sep 2011
PTI reported that the proposed price hike by state-run Coal India Ltd is unlikely before the beginning of next year and will take place after evaluating the impact of the wage revision.
Mr NC Jha CIL Chairman said "The quantum of price revision will be done on the basis of the wage revision. We had two meetings since August this year on wage revision. A third meeting of the Wage Committee is going to happen in November, but the final decision is unlikely to be taken before December. Price revision will happen after that."
He said that CIL has 3.8 lakh employees and wages account for 40% of its production cost. He added that the additional burden due to increased wages could not be ascertained immediately as this would entirely depend upon the quantum of raise the Wage Committee decides.
Mr Jha said that the revision in coal prices will have to be effected post the wage revision as otherwise it will have a huge burden on the company.
The wages of CIL employees were last raised in 2006 and the CIL employees recently gave a strike call demanding a 100% to 500% rise in pay package. Although a Voluntarily Retirement Scheme is in place in the company, very few have sought this option.
Mr R Mohan Das CIL HR Director said the management has already conveyed to the unions that such a steep hike could not be possible and urged them to work on the level of percentage hike. CIL has five major operating unions.
The company had raised the price of coal in 2009 for all products and a partial revision was undertaken in February 2011. Although coal pricing has been deregulated since the beginning of 2000, the government still plays a role in determining the price.
(Sourced from PTI)
PTI reported that the proposed price hike by state-run Coal India Ltd is unlikely before the beginning of next year and will take place after evaluating the impact of the wage revision.
Mr NC Jha CIL Chairman said "The quantum of price revision will be done on the basis of the wage revision. We had two meetings since August this year on wage revision. A third meeting of the Wage Committee is going to happen in November, but the final decision is unlikely to be taken before December. Price revision will happen after that."
He said that CIL has 3.8 lakh employees and wages account for 40% of its production cost. He added that the additional burden due to increased wages could not be ascertained immediately as this would entirely depend upon the quantum of raise the Wage Committee decides.
Mr Jha said that the revision in coal prices will have to be effected post the wage revision as otherwise it will have a huge burden on the company.
The wages of CIL employees were last raised in 2006 and the CIL employees recently gave a strike call demanding a 100% to 500% rise in pay package. Although a Voluntarily Retirement Scheme is in place in the company, very few have sought this option.
Mr R Mohan Das CIL HR Director said the management has already conveyed to the unions that such a steep hike could not be possible and urged them to work on the level of percentage hike. CIL has five major operating unions.
The company had raised the price of coal in 2009 for all products and a partial revision was undertaken in February 2011. Although coal pricing has been deregulated since the beginning of 2000, the government still plays a role in determining the price.
(Sourced from PTI)
Sunday, February 27, 2011
CIL hikes steam coal prices by 15pct from February 26 night
Sunday, 27 Feb 2011, Economics Times
State run Coal India will raise the price of coal on an average by about 15% with effect from tonight to bring in some parity between domestic and international prices.
A source in Coal India Ltd told media that "We are selling coal at 50% lower than imported price. There is a huge gap between overseas and domestic price. Hence, our board took the decision of raising the price yesterday.”
The state run CIL, the world's largest coal producer, had last raised the dry fuel price in October 2009.
(Sourced from ET)
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